Lexmark loses DMCA toner cartridge challenge

The U.S. Copyright Office has ruled against Lexmark in its invoking the DMCA …

In an attempt to keep other companies from offering lower-cost replacement toner cartridges for its fax machines and printers, Lexmark invoked the Digital Millennium Copyright Act late last year. Static Control Components (SCC) had reverse engineered the chip used by Lexmark in its toner cartridges so that it could offer a cheaper alternative to Lexmark's parts. The world's 2nd-largest printer maker cried foul, saying that their chip was covered under the DMCA and reverse engineering illegal. The U.S. Copyright Office has just issued a ruling in the case, and it's not good news for Lexmark.

The ruling says that section 1201 of the DMCA allows aftermarket companies to develop software for the purpose of remanufacturing toner cartridges and printers. SCC argued that Lexmark was trying to shield itself from competition by installing a chip on its toner cartridges to make it difficult for third-party manufacturers to make generic cartridges.

This was a no-brainer from the beginning, and it's refreshing to see the Copyright Office come to the conclusion that the DMCA cannot be used merely to insulate a company from market forces. Lexmark may be feeling additional pain as SCC prepares to go after them for attorney's fees and economic harm caused by their frivolous suit. Hopefully the results of this case will discourage other companies from following the bad example of Lexmark.